5 Signs Your Business Has Outgrown QuickBooks®

In the home and building supply world, managing operations efficiently can be the difference between thriving and just surviving. Many businesses find that relying solely on QuickBooks® was a great solution for them in the early stages of your business, but at the end of the day, it is simply accounting software. Its limitations and signs you have outgrown QuickBooks become increasingly apparent as your operations expand, especially regarding new facilities, product offerings, and customer base growth.

Hidden costs, scalability constraints, and a lack of industry-specific functionality from this software can hinder your growth and profitability when used on its own. Many home and building supply businesses have moved to upgrade their technology to an ERP system, a comprehensive business management solution designed for their specific industry.

5 signs you have outgrown QuickBooks

While QuickBooks' upfront costs may seem appealing, its limitations can significantly impact your bottom line when you look under the hood. Here are 5 signs (plus 5 more) that might be a sign it is time to look for a new solution:

1. Spreadsheets have taken over your desktop
   As your business expands, the volume of data and complexity of transactions increase. QuickBooks' inability to handle this growth may force you to rely more heavily on Excel spreadsheets. If you realize your desktop is overwhelmed with shortcuts to spreadsheets, you are probably finding yourself catching data inaccuracies and silly mistakes that could be costly.
2. There is no flow of data
   QuickBooks' doesn’t often have full integrations with other software systems. This can create data silos, hinder communication between teams, and restrict effective collaboration across departments. When your team needs to dedicate time to rekey data, you are wasting valuable time and resources of skilled team members whose talent would be better used in other areas of the business.
3. Job costing and inventory management take more time than they should
   QuickBooks' is primarily an accounting software, so its job costing capabilities are often insufficient for home building suppliers' often complicated and specific needs. Similarly, its inventory management tools lack the sophistication needed to optimize purchasing, forecast stock levels, and analyze item margins.
4. More time is spent on paperwork than on customers
   QuickBooks' inability to automate routine tasks, such as generating quotes, purchase orders, and invoices, leads to excessive paperwork. This burden on your staff reduces their time and focus on helping customers and driving sales.
5. You can only run the business from the store
   Today, we can check our bank account from the beach, text from an airplane, and live stream your son’s soccer game for family members located across the world. Shouldn’t you be able to check in on your business from those places too? QuickBooks has limited ability for you to access your data remotely to check sales, place orders, see inventory, and confirm pricing when you are not at the physical store.

Over time, as your business grows, more functions need to be automated for you to effectively manage growth and remain competitive. Trying to manage a growing business with basic software will slow you down, reduce staff productivity, prevent you from understanding business performance, and even harm customer loyalty. Long-term profitability and success will require investing in more than just the basics.

If you have experienced even one of these signs that you have outgrown QuickBooks, it might be time to start looking at alternative software solutions that are specifically designed to handle the unique challenges of home and building suppliers.